Dollar Under the Pump
The dollar has moved lower over the last 24 hours in contrast to the strength that we have been seeing in the dollar since the beginning of the week. This had helped the dollar to move higher against several of the currencies but for those who had expected the dollar to continue its momentum higher, they have been left disappointed as the dollar has moved lower during the day ahead of the FOMC meeting minutes. The minutes are expected to be on general lines with the Fed not adding anything new that the market did not already know. Hence the reaction of the markets to this is expected to be severely muted but what should surprise the traders is the fact that the dollar has been moving lower on a day when the stocks have taken a beating. The stock markets have moved lower over the last couple of days on the back of some general profit taking and roll overs and expiries as we head towards the end of the first month of the year. There has not been much fundamentals to drive the markets and hence all the moves have been based on flows.
Crypto Prices are Choppy
The crypto markets are choppy and under increased pressure as the scrutiny and the regularisation of the markets continue to dominate it over the last 24 hours. We have seen Bitfinex and tether being under a subpoena and we also have news of the SEC blocking an ICO in a continued crackdown on the industry in order to ensure that it is brought under the control of the regulators and also to ensure that unaware investors are not scammed in any way. These actions have led to uncertainty which has led the prices of BTC and ETH to move lower. The BTC prices have bee chopping around the $10,000 region and it is expected to continue to stay under pressure during the short term as the traders come to terms with all the changes that have been happening in the markets in different parts of the world over the last couple of days.